Correlation Between Kuehne Nagel and Expeditors International
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel and Expeditors International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kuehne Nagel and Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuehne Nagel International and Expeditors International of, you can compare the effects of market volatilities on Kuehne Nagel and Expeditors International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kuehne Nagel with a short position of Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and Expeditors International.
Diversification Opportunities for Kuehne Nagel and Expeditors International
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuehne and Expeditors is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and Kuehne Nagel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kuehne Nagel International are associated (or correlated) with Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Kuehne Nagel i.e., Kuehne Nagel and Expeditors International go up and down completely randomly.
Pair Corralation between Kuehne Nagel and Expeditors International
Assuming the 90 days horizon Kuehne Nagel International is expected to generate 2.3 times more return on investment than Expeditors International. However, Kuehne Nagel is 2.3 times more volatile than Expeditors International of. It trades about 0.01 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.01 per unit of risk. If you would invest 24,473 in Kuehne Nagel International on November 5, 2024 and sell it today you would lose (1,973) from holding Kuehne Nagel International or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.76% |
| Values | Daily Returns |
Kuehne Nagel International vs. Expeditors International of
Performance |
| Timeline |
| Kuehne Nagel Interna |
| Expeditors International |
Kuehne Nagel and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and Expeditors International
The main advantage of trading using opposite Kuehne Nagel and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel position performs unexpectedly, Expeditors International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Expeditors International will offset losses from the drop in Expeditors International's long position.| Kuehne Nagel vs. DSV Panalpina AS | Kuehne Nagel vs. CH Robinson Worldwide | Kuehne Nagel vs. Kuehne Nagel International | Kuehne Nagel vs. DSV Panalpina AS |
| Expeditors International vs. GXO Logistics | Expeditors International vs. JB Hunt Transport | Expeditors International vs. CH Robinson Worldwide | Expeditors International vs. Hub Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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